Financial statements of - Children's Aid Society · 2017. 6. 12. · Amortization of capital assets 225,589 212,227 (233,442) 666,164 Changes in non-cash operating working capital

Financial statements of

Children and Family Services for York Region March 31, 2017

Children and Family Services for York Region March 31, 2017 Table of contents Independent Auditor’s Report ............................................................................................................................ 1-2

Balance sheet ....................................................................................................................................................... 3

Statement of revenue and expenses .................................................................................................................... 4

Statement of changes in fund balances ................................................................................................................ 5

Statement of re-measurement gains and losses ................................................................................................... 6

Statement of cash flows ........................................................................................................................................ 7

Notes to the financial statements ..................................................................................................................... 8-19

Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca

Independent Auditor’s Report To the Board of Directors of Children and Family Services for York Region

We have audited the accompanying financial statements of Children and Family Services for York Region which comprise the balance sheet as at March 31, 2017, the statements of revenue and expenses, changes in fund balances, re-measurement gains and losses and cash flows for the year then ended, and a summary of significant accounting policies, and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Children and Family Services for York Region as at March 31, 2017 and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional Accountants Licensed Public Accountants June 6, 2017

Children and Family Services for York RegionBalance sheetas at March 31, 2017

2017 2016$ $

AssetsCurrent assets

Cash 921,367 1,334,966 Accounts receivable 715,551 742,577 Short-term investments (Note 3) 497,239 421,123 Prepaid expenses 568,398 563,331 Due from York Region Children’s Fund (Note 15) - 1,579

2,702,555 3,063,576

Loan to York Region Children’s Fund (net of allowance of $65,349 (2016 - $47,312)) (Note 15) 35,188 70,967

Investments (Note 3) 1,271,588 1,310,357 Capital assets (Note 4) 4,316,269 4,389,805

8,325,600 8,834,705

LiabilitiesCurrent liabilities

Accounts payable and accrued liabilities 5,904,082 5,735,529 Current portion of bank loan (Note 5) 215,000 204,000 Current portion of obligations under capital leases (Note 7) 21,045 19,989

6,140,127 5,959,518

Bank loan (Note 5) 2,715,000 2,930,000 Deferred capital contribution 63,021 75,531 Deferred leasehold allowance 178,913 173,551 Obligations under capital leases (Note 7) 35,620 56,665 Derivative liability (Note 11) 520,538 688,732

9,653,219 9,883,997

Fund balancesOperating fund (3,050,462) (2,515,059) Capital fund 1,266,583 1,103,620 Restricted funds (Note 8) 976,798 1,050,879

(807,081) (360,560) Accumulated re-measurement losses (520,538) (688,732)

(1,327,619) (1,049,292) 8,325,600 8,834,705

Approved on behalf of the Board

_________________________________ Director

_________________________________ Director

The accompanying notes to the financial statements are an integral part of this financial statement.Page 3

Children and Family Services for York RegionStatement of revenue and expensesyear ended March 31, 2017

Operating fund Capital fund Restricted funds Total

2017 2016 2017 2016 2017 2016 2017 2016$ $ $ $ $ $ $ $

RevenueProvincial grant (Note 14) 47,964,758 47,215,578 - - - - 47,964,758 47,215,578 Contributions and donations - - - - 68,655 244,805 68,655 244,805 Amortization of deferred

capital contribution - - 12,510 12,510 - - 12,510 12,510 Other income and recoveries 2,669,903 3,127,383 - - 759,619 814,527 3,429,522 3,941,910 50,634,661 50,342,961 12,510 12,510 828,274 1,059,332 51,475,445 51,414,803

ExpensesSalaries and wages 24,065,019 23,863,038 - - - - 24,065,019 23,863,038 Employee benefits 6,763,999 6,730,210 - - - - 6,763,999 6,730,210 Travel 1,269,248 1,363,229 - - 999 3,190 1,270,247 1,366,419 Training and recruitment 46,079 57,307 - - 434,500 413,776 480,579 471,083 Building occupancy 1,181,640 1,152,232 - - - - 1,181,640 1,152,232 Purchased services non-client 195,890 174,435 - - - - 195,890 174,435 Boarding rate payments

Foster care 3,717,258 3,839,183 - - - - 3,717,258 3,839,183 Independent living 1,513,841 1,654,509 - - - - 1,513,841 1,654,509 Institutional care 8,668,131 7,582,582 - - - - 8,668,131 7,582,582 Other 10,285 6,080 - - - - 10,285 6,080

Purchased services client 828,918 755,313 - - - - 828,918 755,313 Clients’ personal needs 776,489 685,119 - - - - 776,489 685,119 Financial assistance 13,024 8,026 - - - - 13,024 8,026 Medical and related 655,514 611,265 - - - - 655,514 611,265 Promotion and publicity 35,801 39,913 - - - - 35,801 39,913 Office administration 285,934 296,729 - - - - 285,934 296,729 Miscellaneous 127,273 154,089 - - 466,856 737,017 594,129 891,106 Mortgage interest 155,395 168,638 - - - - 155,395 168,638 Information and technology 484,284 440,249 - - - - 484,284 440,249 Amortization of capital assets - - 225,589 212,227 - - 225,589 212,227 50,794,022 49,582,146 225,589 212,227 902,355 1,153,983 51,921,966 50,948,356

Excess of (expenses over revenue)revenue over expenses (159,361) 760,815 (213,079) (199,717) (74,081) (94,651) (446,521) 466,447


Children and Family Services for York RegionStatement of changes in fund balancesyear ended March 31, 2017

2017 2016

Operating Capital Restricted

fund fund funds Total Total

$ $ $ $ $

Fund balances, beginning of year (2,515,059) 1,103,620 1,050,879 (360,560) (827,007)

Excess of expenses over revenue (159,361) (213,079) (74,081) (446,521) 466,447

Purchases of capital assets (152,053) 152,053 - - -

Bank loan repayment (204,000) 204,000 - - -

Capital lease obligations (19,989) 19,989 - - -

Fund balances, end of year (3,050,462) 1,266,583 976,798 (807,081) (360,560)


Children and Family Services for York RegionStatement of re-measurement gains and lossesyear ended March 31, 2017

2017 2016

$ $

Accumulated re-measurement loss, beginning of year (688,732) (706,041) Unrealized gain attributable to derivatives - interest rate swap 168,194 17,309 Accumulated re-measurement loss, end of year (520,538) (688,732)


Children and Family Services for York RegionStatement of cash flowsyear ended March 31, 2017

2017 2016

$ $

Operating activitiesExcess of (expenses over revenue) revenue over expenses (446,521) 466,447 Items not affecting cash

Amortization of deferred capital contribution (12,510) (12,510) Amortization of capital assets 225,589 212,227

(233,442) 666,164

Changes in non-cash operating working capital itemsAccounts receivable 27,026 (254,095) Prepaid expenses (5,067) 225,065 Due from York Region Children’s Fund 1,579 49,877 Accounts payable and accrued liabilities 168,553 205,075

(41,351) 892,086

Financing activitiesLoan to York Region Children’s Fund 35,779 60,453 Bank loan (204,000) (195,000)

(168,221) (134,547)

Investing activityNet purchases of investments (37,347) (38,083)

Capital activitiesDeferred leasehold allowance 5,362 12,726 Purchase of capital assets (152,053) (149,044) Obligation under capital leases (19,989) (18,986)

(166,680) (155,304)

Net cash (outflow) inflow (413,599) 564,152 Cash, beginning of year 1,334,966 770,814 Cash, end of year 921,367 1,334,966

Supplemental cash disclosureInterest paid 155,395 168,638


Children and Family Services for York Region Notes to the financial statements March 31, 2017

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1. Mandate and basis of presentation

Children and Family Services for York Region (the “Organization”) is responsible for the care and protection of children in York Region as set out under the provisions of The Child and Family Services Act.

The Organization is classified as a registered charity under the Income Tax Act and, as such, is not subject to income tax.

The Organization is deemed to control the York Region Children’s Fund (Note 15). As permitted by the Accounting Standards for Government (Public Sector) Not-for-Profit Organizations (“Government NPOs”), the financial information for this controlled entity has been disclosed (in Note 15), rather than consolidated.

2. Significant accounting policies

Basis of presentation

The financial statements of the Organization have been prepared by management in accordance with Canadian public sector accounting standards for government not-for-profit organizations, including the 4200 series of standards, as issued by the Public Sector Accounting Board.

Financial instruments

Financial instruments reported on the Balance sheet of the Organization are measured as follows:

Financial instrument Measurement basis

Cash Amortized costAccounts receivable Amortized costShort-term investments Fair valueDue from York Region Children’s Fund Amortized costLoan to York Region Children's Fund Amortized costInvestments Fair valueAccounts payable and accrued liabilities Amortized costBank loan Amortized costObligation under capital leases Amortized costDerivative liability Fair value

Under PS 3450, all financial instruments, including derivatives, are included on the Balance sheet and are measured either at fair value or at amortized cost based on the characteristics of the instrument and the Organization’ accounting policy choices.

Financial instruments measured at fair value are initially recognized at cost and subsequently carried at fair value. Unrealized changes in fair value are recognized in the Statement of re-measurement gains and losses until they are realized, when they are transferred to the Statement of revenue and expenses. Transaction costs related to financial instruments in the fair value category are expensed as incurred.

Where a decline in fair value is determined to be other than temporary, the amount of the loss is removed from accumulated re-measurement gains and losses, and recognized in the Statement of revenue and expenses. On sale or disposal, the amount held in accumulated re-measurement gains and losses associated with that instrument is removed therefrom and recognized in the Statement of revenue and expenses.

Financial instruments measured at amortized cost are initially recognized at cost, and subsequently carried at amortized cost using the effective interest rate method, less any impairment losses on financial assets. Transaction costs related to financial instruments in the amortized cost category are added to the carrying value of the instrument.


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2. Significant accounting policies (continued)

Financial instruments (continued)

Write-downs on financial assets in the amortized cost category are recognized when the amount of a loss is known with sufficient precision, and there is no realistic prospect of recovery. Financial assets are then written down to net recoverable value with the write-down being recognized in the Statement of revenue and expenses

The Organization has designated its Investments that would otherwise be classified into the amortized cost category at fair value, as the Organization manages and reports performance over it on a fair value basis.

Revenue recognition

Revenue from donations and fund-raising activities is recorded when received. Restricted contributions are recognized as revenue of the appropriate restricted fund.

Capital assets

Capital assets are recorded at cost and are amortized using the straight-line method at the rates disclosed in Note 4.

Deferred leasehold allowance

Deferred leasehold allowance is offset against the related rent expense.

Deferred lease contributions

Deferred capital contributions represent amounts contributed for capital assets and are amortized at the same rate as the related capital assets.

Contributed materials and services

These financial statements do not include the substantial value of services contributed by volunteers, foster parents and other interested parties because of the difficulty of determining their fair value.

Contributed materials, which would normally be purchased, are recorded as revenue and expense at their fair value when such value can be determined.

Use of estimates

In the preparing the Organization’s financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Accounts which are subject to significant estimates include accounts receivable, amortization expense, accrued liabilities and the derivative liability.

Investment income

Income earned on investments held under the terms of certain trust accounts is included in contributions and donations revenue in the Children’s Special Fund.


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3. Investments

The investments consist of the following Guaranteed Investment Certificates:

2017 2016$ $

Short-term investmentsMaturing November 15, 2016 at 2.19% - 421,122 Maturing November 06, 2017 at 2.30% 285,239 - Maturing November 20, 2017 at 1.40% 212,000 -

497,239 421,122

Long-term investmentsMaturing November 06, 2017, interest at 2.30% - 278,825 Maturing November 15, 2018, interest at 2.74% 397,240 386,646 Maturing November 19, 2018, interest at 1.50% 214,860 - Maturing November 26, 2018, interest at 2.00% 106,976 104,879 Maturing September 23, 2019, interest at 2.60% 173,236 168,646 Maturing August 04, 2020, interest at 2.10% 160,600 157,297 Maturing January 19, 2021, interest at 2.25% 218,676 213,864

1,271,588 1,310,157

4. Capital assets

2017 2016Accumulated Net book Net book

Rates Cost amortization value value$ $ $ $

Land N/A 1,064,953 - 1,064,953 1,064,953 Building 40 years 3,945,858 959,284 2,986,574 2,986,610 Leasehold

improvements Lease term 1,030,508 994,826 35,682 44,623 Furniture and fixtures 5 years 1,800,150 1,800,150 - - Computers 3 - 8 years 2,127,435 1,898,375 229,060 293,619

9,968,904 5,652,635 4,316,269 4,389,805

Included in the amounts for computers are leased assets with a cost of $153,512 (2016 - $153,512) and accumulated amortization of $96,847 (2016 - $76,858).

5. Bank loan

The Organization has utilized a $4,500,000 bankers’ acceptance loan from the Royal Bank of Canada. The loan bears interest at the Royal Bank of Canada’s prime rate minus 0.10% per annum, plus an acceptance fee of 0.35% per annum, payable monthly. The agreement expires with the maturity of the loan on November 8, 2027.

The loan is secured by a general security agreement, constituting a first ranking security interest in all personal property of the Organization, together with a collateral mortgage in the amount of $4,500,000, constituting a first charge on the Organization’s property.


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5. Bank loan (continued)

2017 2016$ $

Balance 2,930,000 3,134,000 Less: current portion 215,000 204,000 Long-term portion 2,715,000 2,930,000

Repayments of the loan as at March 31, 2017 are as follows:

$

2018 215,000 2019 224,000 2020 236,000 2021 247,000 2022 259,000 Thereafter 1,749,000

2,930,000

Interest expense for the year amounted to $155,395 (2016 - $168,638).

The Organization has entered into a 20 year interest rate swap to hedge the interest rate exposure associated with the loan. The swap effectively locks in the interest rate applicable on the long-term debt at 4.81%. The Notional value of the swap is $2,930,000 (2016 - $3,134,000).

6. Bank facility

The Organization has an unsecured credit facility of $2.5 million with a Canadian chartered bank. At March 31, 2017 $Nil (2016 - $Nil) was drawn on this facility. Interest is charged on unpaid balances at the rate of prime plus 1%.

7. Lease obligations

The Organization is committed under leases for rent, office equipment and computers requiring minimum annual rental payments at March 31, 2017 as follows:

Capital Operatingleases leases

$ $

2018 24,458 521,968 2019 24,458 424,232 2020 14,267 187,755 2021 - 190,278 2022 - 192,891 Thereafter - 544,300

63,183 2,061,424 Less amount representing interest at 5.16% 6,518 Principal portion of lease obligations 56,665 Less: current portion 21,045 Long-term portion under capital lease 35,620


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7. Lease obligations (continued)

Interest expense related to capital leases amounted to $4,468 (2016 - $5,472).

The Organization had a lease agreement with The Regional Municipality of York (the “Region”) for its administration building located at 85 Eagle Street West, Newmarket. Under the terms of the agreement which was due to expire in 2027, the Organization had agreed to an annual rental payment of $1.

Under the terms of a surrender of lease agreement dated December 2014, the Region has agreed to pay the Organization $1,234,496 in six instalments as follows to cover its rent for the Newmarket and Vaughan premises (amounts for which are included in the operating leases amounts above):

Payable in the month of:

$

December 2014 210,506 2015 222,550 2016 224,927 2017 229,670 2018 172,263 2019 174,580

1,234,496

8. Restricted funds

Restricted funds consist of:

Children’s Special Fund

The Children’s Special Fund records public donations made to the Organization. Amounts spent within this Fund are based on the wishes of the donor, or as decided by the Board of Directors.

Joyce Taylor Memorial Fund

The Joyce Taylor Memorial Fund was established to commemorate the many years of dedicated service provided to children and families by a former employee of the Organization. The Fund is intended to enrich the lives of children who are eligible for adoption.

Community Education Fund

The Community Education Fund was established to assist with training activities that would support mandated child welfare services.

Foundation Education Special Needs Fund

The Foundation Education Special Needs Fund is funded by York Region Children’s Aid Foundation and provides funding to support education for special needs children who are in care.

Foundation Family Services Camp Fund

The Foundation Family Services Camp Fund is funded by York Region Children’s Aid Foundation and provides funding to support children to have a camp experience from which they would benefit.

Fostering Fund

The Fostering Fund is a special fund to capture all the fund raising activities and transaction by the Foster Parent Association.


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8. Restricted funds (continued)

RESP Fund

The RESP Fund has been established to record amounts received by the Organization for children/youth who are entitled to the Universal Child Care Benefit. The objective is to increase the likelihood that more children will, with the incentive of increased financial resources of an RESP, pursue post-secondary education and vocational training.

OCBe Fund

The OCBe (Ontario Child Tax Benefit equivalent) Fund was established to account for funds received from the Province that is to provide opportunities for children and youth in care and in formal customary care, 0-17 years old, to participate in recreational/educational, cultural, and social activities that will support their achievement of higher educational success, higher degree of resiliency and a smoother transition to adulthood.

OCBe Savings Fund

The OCBe Fund Savings Program are funds received from the Province to be used to assist eligible youth in their transition to independent living.


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8. Restricted funds (continued)

2017 2016Foundation

Joyce Education Foundation OCBe OCBeChildren’s Taylor Community Special Family Fund Fund

Special Memorial Education Needs Services RESP Program SavingFund Fund Fund Fund Camp Fund Fund Activities Program Total Total

$ $ $ $ $ $ $ $ $ $

Balances, beginning of year 285,367 186 27,862 - - 362,791 26,879 347,794 1,050,879 1,145,530

RevenueDonations 67,954 - - - 701 - - - 68,655 204,805 Other contributions and - - - - - - - -

recoveries - - 17,005 - - 295,962 306,081 140,571 759,619 854,527 67,954 - 17,005 - 701 295,962 306,081 140,571 828,274 1,059,332

ExpensesTravel 999 - - - - - - - 999 3,190 Education and training 56,881 - - 7,916 29,786 229,680 110,238 - 434,501 413,776 Social skills - - - - - - 194,211 - 194,211 296,360 Transition to adulthood - - - - - - 29,723 182,014 211,737 238,542 Other 46,219 186 14,502 - - - - - 60,907 202,115

104,099 186 14,502 7,916 29,786 229,680 334,172 182,014 902,355 1,153,983

Excess of (expenses over) revenue (revenue overexpenses) for the year (36,145) (186) 2,503 (7,916) (29,085) 66,282 (28,091) (41,443) (74,081) (94,651)

Balance, end of year 249,222 - 30,365 (7,916) (29,085) 429,073 (1,212) 306,351 976,798 1,050,879


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9. Pension plan

The Organization participates in the Ontario Municipal Employees Retirement System (“OMERS”) contributory defined benefit pension plan. Employer contributions for 2017 amounted to $2,300,785 (2016 - $2,221,565) and are included in employee benefits in the Statement of revenue and expenses.

10. Contingent liabilities and guarantees

Contingent liabilities

Various lawsuits have been filed against the Organization for incidents which arose in the ordinary course of operations. In addition, one of the independent outside foster care providers that the organization purchases foster care from is being re-assessed by Canada Revenue Agency for the applicability of Goods and Services Tax/Harmonized Sales Tax. The ruling may indicate that the independent outside foster care provider is subject to Goods and Services Tax/Harmonized Sales Tax. In the opinion of management and legal counsel, the outcome of this and of the lawsuits, now pending, is not determinable. Should any loss result from the resolution of these claims, such loss will be recognized in the year of resolution.

Guarantees

Indemnity has been provided to all directors and officers of the Organization for various items including, but not limited to, all costs to settle suits or actions due to their involvement with the Organization, subject to certain restrictions. The Organization has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated.

11. Derivative liability

The Organization entered into an interest rate swap in order to reduce the impact of fluctuating interest rates on its long term debt. The policy of the Organization is not to enter into interest rate swap agreements for trading or speculative purposes.

12. Financial instruments and risk management

The investments held by the Organization are exposed to a variety of financial risks. The Organization seeks to minimize the potential adverse effects of these risks by regularly monitoring the investment’s position, market events and the diversifying of the investment portfolio within the constraints of the Organization’s Investment Policies.

The risks that are relevant to the Organization’s investments are as follows:

Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect the value of fixed income securities held by the Organization. The interest bearing investments held by the Organization have a limited exposure to interest rate risk due to their short-term maturity. The Organization has formal policies and procedures that establish target asset mix, minimum credit ratings and varying terms of the securities held.

The Organization is exposed to interest rate risk on its long-term debt. For its long term debt, the Organization has entered into an interest rate swap agreement in order to manage the impact of fluctuating interest rates. The Organization’s policy is not to utilize derivative instruments for trading or speculative purposes.

Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. As at March 31, 2017 and 2016, the Organization’s investments in fixed income securities are with banking institutions.


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12. Financial instruments and risk management (continued)

Fair value

The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximates their carrying values due to their short-term maturity. The fair value of long-term debt, capital lease obligations and the derivative liability approximates their carrying value, as they have financing conditions similar to those currently available to the Organization. The fair value of investments which consist of Guaranteed Investment Certificates is determined using cost plus accrued interest.

The fair value of the interest rate swap is determined using the discounted cash flow method.

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and,

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

The following table presents the financial instruments recorded at fair value in the Balance sheet, classified using the fair value hierarchy described above:

Financial instruments at fair value as at March 31,2017

Level 1 Level 2 Level 3 Total$ $ $ $

Short-term investments - 497,239 - 497,239 Investments - 1,271,588 - 1,271,588 Derivative liability - 520,538 - 520,538

Financial instruments at fair value as at March 31,

2016Level 1 Level 2 Level 3 Total

$ $ $ $

Short-term investments - 421,123 - 421,123 Investments - 1,310,357 - 1,310,357 Derivative liability - 688,732 - 688,732

There have been no movements between levels for the year ended March 31, 2017.


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12. Financial instruments and risk management policy (continued)

Fair value hierarchy (continued)

For fair value measurements in Level 2 of the fair value hierarchy, a reconciliation from the beginning balances to the ending balances, together with changes during the year has been provided in the table below:

2017 2016$ $

Derivative liability Balance, beginning of year 688,732 706,041 Gain for the year recognized in the Statement

of remeasurement gains and losses (168,194) (17,309) Balance, end of year 520,538 688,732

13. Transitional Aged Youth

During the current fiscal year, the Ministry of Community and Social Services provided funding to support individuals, aged 18 to 21, who have a developmental disability in accordance with relevant legislation. The funding is for the accommodation and in-care cost of these individuals.

Summary of Transitional Aged Youth (18 years and up)

2017 2016$ $

RevenueProvincial grants 667,476 860,214

ExpensesIndependent living 637,852 827,966 Health and related 23,448 23,556 Other in-care costs 5,268 8,692

666,568 860,214 Excess of (expenses over revenue) revenue over expenses 908 -

14. Revenue

During the year, the Ministry of Children and Youth Services provided the Organization with funding of $355,778 (2016 - $367,823) to be applied towards prior years’ deficits. As this funding decision was made in the 2017 fiscal year, the amount is included in revenue for the year ended March 31, 2017.

15. York Region Children’s Fund

The York Region Children’s Fund (the “YRCF”) was incorporated in November 2013 as an independent legal entity and Registered Charity whose sole purpose is to raise funds for the exclusive benefit of the welfare of children and their families within York Region through support for the Children and Family Services for York Region.

The funds raised will enhance compassionate care to the children, youth and families served by providing important childhood experiences and opportunities for them, so that our community’s children and youth reach their full potential.


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15. York Region Children’s Fund (continued)

The following discloses the YRCF’s financial statement elements as at March 31, 2017 and for the year then ended.

Balance sheet as at

2017 2016$ $

AssetsCurrent assets

Cash 36,495 60,396 Other - 48

36,495 60,444

Liabilities Current liabilities

Accounts payable - other - 2,500 Accounts payable - due to Children and Family Services for

York Region 90 1,579 Loan payable to Children and Family Serviices for York Region 20,107 17,742

20,197 21,821 Loan payable to Children and Family Services for York Region 80,430 100,537

100,627 122,358 Deficit (64,132) (61,914)

36,495 60,444

The amount due to Children and Family Services is interest free and due on demand.

The loan is interest free, is unsecured and is repayable as follows:

$

2018 20,107 2019 20,107 2020 21,114 2021 15,684 2022 10,586 Thereafter 12,939

100,537

Statement of revenue and expenses:

2017 2016$ $

Revenue 70,600 373,161 Expenses 72,818 (322,551) Excess of revenue over expense (2,218) 50,610

Expenses include $64,963 (2016 - $188,610) that represent donations to Children and Family Services for York Region, while revenue includes $Nil (2016 - $32,247) that was charged for common costs.


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16. Restricted funds one-time capital funding

During the year, the Ministry of Children and Youth Services provided the Organization with one-time capital funding of $120,000 to resurface the parking lot (2016 - $15,000 to replace one of the HVAC units). The amount is included in revenue and the expense is included in building occupancy for Ministry reporting purposes.

Documents

Financial statements of - Children's Aid Society · 2017. 6. 12. · Amortization of capital assets 225,589 212,227 (233,442) 666,164 Changes in non-cash operating working capital